Apple expected to focus on iPhone, iPod

Analysts say iPad Mini, TV set highly unlikely at Wednesday event

By

DanGallagher

SAN FRANCISCO (MarketWatch) — Apple Inc. will host a product event on Wednesday, and the rumor mill that typically surrounds the company’s popular gatherings has gone into overdrive with speculation about the devices that may be unveiled.

However, the analysts tracking Apple
AAPL, +1.72%
are keyed in mainly on the next iPhone. Most expect the company to also unveil some refreshes to its line of iPod digital music players, though this business has become far less significant to the company’s market value than the iPhone and iPad.

Reuters

Apple CEO Tim Cook, shown here at last year’s Verizon launch of the iPhone, is expected to unveil a new model of the popular smartphone on Wednesday.

Regarding the iPad, while buzz is strong that Apple is designing a new, smaller version of the popular tablet, few expect details to be shared at the event the company is hosting Wednesday in San Francisco, which gets underway at 1 p.m. Eastern. Expectations for an Apple-branded TV set appear to have been pushed into next year.

“I would be very surprised if Apple unveiled those other products at this event,” said Shaw Wu of Sterne Agee in an interview, when asked about the iPad Mini and so-called iTV.

Apple, in keeping with its secretive nature, has not uttered a word about any new products — save for a preview over the summer of a new mobile operating system called iOS 6, which the company plans to launch this fall. A new OS has typically accompanied the launch of a new iPhone.

“While there may be fewer surprises than there have been in prior years (as the number of leaks seem to be uncharacteristically high this time around), we still see numerous catalysts for the shares to perform well over the next couple months and the next year,” wrote Peter Misek of Jefferies & Co. in a Tuesday note.

The iPhone 5 is expected to be the star of the show. After last year’s 4S model, which sported virtually the same physical design as the previous model, the iPhone 4, the new version is expected to feature a revamped design that offers a larger. 4-inch screen and a thinner body with a metal backing.

On the inside, the iPhone 5 is expected to include a faster processor and the ability to connect to high-speed LTE networks. One potentially controversial change may be a new connection port that breaks from the 30-pin connector that Apple has used for years and could limit the capacity of current third-party products — such as speaker docks — to work with the device.

“We believe the iPhone 5 will be one of the biggest product cycles for Apple,” predicted Abhey Lamba of Mizuho Securities. He lifted his price target on the stock to $750 from $725 in a note Tuesday.

Lamba also noted some concerns about limited manufacturing yields of the new in-cell display reportedly in use in the new iPhone, which may crimp availability of the new iPhone near its launch date. He trimmed his forecast for iPhone shipments in the December quarter to 46 million units from 51 million units.

Wednesday’s event is also “highly likely” to feature new iPods, wrote Misek of Jefferies. He predicted a new version of the iPod nano as well as a new design for the iPod touch that may bring the screen to a similar size as the iPhone 5’s.

As for the iPad Mini, Wu said there is little doubt that Apple is working on such a device, but his research into Asian component suppliers indicates that “they have not yet gotten the ‘go’ signal from Apple.” Some media outlets have reported that Apple plans to hold another event in October to unveil the new iPads.

“For the new iPhone, there is definitely stronger evidence of a supply chain that is already moving,” Wu said. “An iPad Mini at this point would be very surprising.”

As for an Apple-branded TV, several analysts earlier this year had been predicting such a product to launch this holiday season. But reports have surfaced about holdups in the necessary content deals with media owners and cable operators, so most expectations for the TV product have been pushed out to next year. Read full story about delay in Apple's TV product.

Apple shares were last trading up fractionally at $663.87. The stock has surged nearly 64% since the first of the year.

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